Siphesihle Jele
While the Public Finance Management Act (PFMA) is intended to promote good financial management to maximise service delivery and to hold public officials accountable for financial misconduct, it appears DIRCO official Zaheer Laher, the acting deputy director-general (DDG), may have broken the law.
The Star has been informed that Laher, by allegedly misusing the department’s role in managing diplomatic missions and international relations, may have broken the PFMA, and if confirmed, is punishable by imprisonment or a fine.
A story published by The Star on August 30 puts Laher at the centre of allegedly violating the Host Agreement that established the headquarters of AFCONE in South Africa, by withholding South Africa’s payments to the African Commission on Nuclear Energy (AFCONE) and attempting to irregularly terminate the diplomatic immunity of the Executive Secretary of AFCONE.
According to legal papers against Laher, it appears that for a long time, without the knowledge of his superiors at DIRCO, Laher was allegedly misusing his control over financial resources intended for advancing South Africa’s international nuclear diplomacy, in this case through funding AFCONE, to coerce AFCONE staff, and to carry out what appears to be a personal vendetta against the Executive Secretary of AFCONE.
DIRCO’s financial contributions to international organisations are appropriated in terms of section 26 of the Public Finance Management Act 1 of 1999 (the PFMA) read with the Appropriation Act 8 of 2023 for the 2023/2024 financial year.
Consequently, by deliberately withholding payments to AFCONE, Laher would be committing an act that amounts to unauthorised expenditure in terms of the PFMA. By standing in the way of government service delivery to international organisations, Laher is considered to be committing an act of financial misconduct since an accounting officer of DIRCO has a fiduciary duty to ensure that effective and appropriate steps are taken to prevent unauthorised expenditure.
Because of not adhering to the fiduciary responsibilities above, an accounting officer commits an act of financial misconduct which if found guilty, is an offence that is liable for a conviction and/or a fine.
In order not to lose the public’s confidence, it would be necessary for DIRCO to carry out an internal investigation in order to (hopefully) confirm that this matter is a once off case of professional misdemeanour by one of their staff, and not a issue that is endemic in DIRCO.
Given the department’s role in managing diplomatic missions, international relations, and foreign aid, unscrupulous DIRCO officials have ample opportunity to violate the PFMA in several ways, including, misappropriation of public funds, irregular or wasteful expenditure, corruption and conflict of interest, manipulating international development aid, non-compliance with financial oversight and reporting, asset mismanagement, manipulation of procurement processes, unauthorised expenditure, and fraudulent claims and allowances.
While the PFMA is designed to ensure that public resources are used effectively, efficiently, economically, and only for the purposes approved by government, it appears that Laher has misused his position in DIRCO and his control over the funds allocated for AFCONE to mastermind various forms of financial misconduct or abuse. Violating the PFMA carries severe consequences, including disciplinary actions, criminal charges, and reputational damage.
The Star also found out that due to the refusal by Laher to honour the government’s commitment to pay the rental for AFCONE offices in 2024, AFCONE staff have been locked out of their office since September 30. This is an unprecedented situation that has shocked the diplomatic community and left many scratching their heads whether Laher’s motive is to remove the headquarters of AFCONE from South Africa.
In over 100 years of international organisations, since the formation of the League of Nations in 1920, there has been no case where a government failed to honour its commitments to an international organisation that it was hosting, to the point where the organisation was without office space.
This is a major embarrassment for the government and something that would not attract international organisations to South Africa.
It is important to remember that hosting an international organisation is a serious matter of national interest and commitment. Hosting the headquarters of an international organisation enhances a country’s global standing, fosters economic growth, improves diplomatic networks, and increases its soft power influence on the world stage.
In the case of AFCONE which deals with nuclear issues, the strategic value for South Africa is enormous, considering the role that the country wanted to play in nuclear diplomacy post-apartheid, and is currently enjoying largely through hosting AFCONE.
It seems Laher is determined to chase AFCONE out of South Africa through violating the PFMA, making sure that the organisation does not have an office, and that there is no money to operate the organisation in South Africa.
Let’s remember that the government went to great lengths to host AFCONE in South Africa. Furthermore, even though the African nuclear weapon Free Zone Treaty that established AFCONE was signed in Cairo, the government made sure that it was called the Treaty of Pelindaba.
When apartheid ended in South Africa, former president De Klerk declared in parliament on 24 March 1993 that the country would dismantle its nuclear weapons arsenal, and it would cooperate in establishing a nuclear weapon free zone in Africa.
Following De Klerk’s declaration, the then Chief Executive of the South African Atomic Energy Agency, Dr Waldo Stumpf, outlined to a meeting in Harare on April 1-4 1993, South Africa’s preparedness to share its expertise and experiences in the peaceful uses of nuclear technology with other African countries.
AFCONE is the organisation that was established by the African nuclear-weapon free zone treaty, and mandated to promote the peaceful applications of nuclear energy in Africa, and to coordinate regional and international cooperation for that purpose; and the South African government went to great political lengths to name the Treaty Pelindaba, and to host AFCONE because doing so aligned with South Africa’s goals for regional nuclear hegemony and global aspirations in the nuclear landscape.
Hosting AFCONE has given South Africa the upper hand in shaping nuclear policy on the continent and leadership in promoting peace, security, and development in Africa. That is precisely what the government of South Africa was striving to host AFCONE, as part of its post-Apartheid efforts to establish itself on the African and global stages.
It would be a shame if all our government gains and efforts, initially over a period of 12 years (1993 -2015), the fruits of which the nation is now enjoying are allowed to be undone by the whims of individual bureaucrats. This issue, if not given the due urgency, could erode the public’s confidence in how DIRCO represent them in managing international relations and cooperation, including the funds allocated for such purposes. It could also potentially hurt South Africa’s chances of attracting new international organisations or becoming a hub for multilateralism in Africa, and consequently, South Africa could stand to lose the respect and economic and political benefits that accrue from such relationships.
It is also alleged that Laher tried to stop legally convened sessions of AFCONE’s general assembly from taking place in December 2023, January 2024, and May 2024. Yet he has remained silent on a recent attempt to illegally convene an AFCONE General Assembly.
It is now urgent for the government to deploy the relevant oversight processes to investigate the allegations regarding misconduct in terms of the Public Finance Management Act, and alleged abuses of office to mitigate any potential damage caused by Laher to the public trust and to South Africa’s regional and international standing.
Siphesihle Jele is the Chairperson of NGO Right to Justice and is a virtuoso in the local government space.
The Star